M21-1, Part III, Subpart v, Chapter 4, Section C
Section C. Adjusting Department of Veterans Affairs (VA) Benefits Based on a Veteran’s Receipt of Active Service Pay
Overview
In This Section
/ This section contains the following topics:Topic / Topic Name
1 / General Information on Waivers of VA Benefits to Receive Drill Pay
2 / Determining the Number of Days of VA Benefits a Veteran Must Waive
3 / Processing VA Form 21-8951, Notice of Waiver of VA Compensation or Pension to Receive Military Pay and Allowances, and Handling a Veteran’s Failure to Return the Form
4 / Creating a Withholding to Offset a Veteran’s Receipt of Drill Pay
5 / Restoring Benefits VA Previously Withheld to Offset a Veteran’s Receipt of Drill Pay
6 / Award Adjustments Necessitated by a Veteran’s Return to and Discharge From Active Duty
7 / Examples of Award Adjustments
1. General Information on Waivers of VA Benefits to Receive Drill Pay
Introduction
/ This topic contains general information on waivers of VA benefits to receive drill pay,including- definition of drill pay
- prohibition against concurrent receipt of drill pay and VA benefits
- process for identifying Veterans who concurrently received drill pay and VA benefits
- information contained on VA Form 21-8951, Notice of Waiver of VA Compensation or Pension to Receive Military Pay and Allowances, from the Hines Information Technology Center (ITC)
- options a Veteran has when completing VA Form 21-8951, and
- use of VA Form 21-8951-2.
Change Date
/ April 20, 2015a. Definition: Drill Pay
/ The term drill pay refers to the monetary benefits a reservist or member of the National Guard receives for performing active or inactive duty training.VA Form 21-8951, Notice of Waiver of VA Compensation or Pension to Receive Military Pay and Allowances, which is discussed elsewhere in this topic, uses the terms military pay and training pay instead of drill pay.
b. Prohibition Against Concurrent Receipt of Drill Pay and VA Benefits
/ 10 U.S.C. 12316 and 38 U.S.C. 5304(c) prohibit the concurrent receipt of drill pay and Department of Veterans Affairs (VA) disability compensation orpension.- Veterans who perform active or inactive duty training must choose the benefit they prefer and waive the other.
- Most Veterans choose to receive drill pay instead of disability compensation or pension because drill pay is typically the greater benefit. These Veterans must waive their VA benefits for the same number of days they received drill pay.
- Concurrent receipt of VA benefits and the subsistence allowance that a Veteran in the Senior Reserve Officers’ Training Corps (SROTC) might receive is not prohibited. Only concurrent receipt of VA benefits and pay the Veteran receives for active or inactive duty training in the SROTC is prohibited.
References: For more information about the prohibition against concurrent receipt of active service pay and VA compensation or pension, see
- 38 CFR 3.654, and
- 38 CFR 3.700(a)(1).
c. Process for Identifying Veterans Who Concurrently Received Drill Pay and VA Benefits
/ The table below describes how VA identifies Veterans who concurrently received drill pay and VA benefits:Stage / Description
1 / At the end of each fiscal year, the Defense Manpower Data Center (DMDC) sends an electronic file to the Hines Information Technology Center (ITC) that identifiesVeterans who received both drill pay and VA disability compensation or pension during that fiscalyear.
Note: If an interruption occurs in obtaining this data from DMDC, the filemightinclude drill pay data for one or more prior years.
2 / Before processing the file, the Hines ITC updatesthe corporate record of each Veteran to reflect the number of days he/she received drill pay during the prior fiscal year.
Notes:
- The update is visible in the DRILL PAY PROFILE field of the DRILL PAY tab under the AWARD ADJUSTMENTS screen.
- If DMDC sends drill pay data for multiple fiscal years, only the data pertaining to the most recent fiscal year appears in the DRILL PAY PROFILE field.
3 / The Hines ITC
- generates a VA Form 21-8951for each Veteran identified in the electronic file
- sends the form to eachVeteran for completion
- uploads a copy of the form into each Veteran’s electronic claims folder (eFolder), and
- establishes a diary in each Veteran’scorporate recordto control for return of the form within 60 days.
Note: VA considered the completion of VA Form 21-8951 a one-time waiver of drill pay from 1989 until 1995, when it began requiring Veterans to complete the form annually.
References: For more information about
- data the Hines ITC provides for each Veteran on VA Form 21-8951, see M21-1, Part III, Subpart v, 4.C.1.d, and
- processing VA Form 21-8951, see M21-1, Part III, Subpart v, 4.C.3.
d. Information Contained on VA Form 21-8951 From the Hines ITC
/ The VA Form 21-8951 that the Hines ITC generates- informs eachVeteran
the law prohibits the concurrent payment of drill pay and VA disability compensation or pension, and
- displays
the return address of the regional office (RO) of jurisdiction (ROJ), and
the number of days for which the Veteran received drill pay during thespecified fiscal year.
e. Options a Veteran Has When Completing VA Form 21-8951
/ The table below describes the various options a Veteran has when completingVA Form 21-8951:Option / Description
1 / Check the box next to the sentence that reads: I elect to waive VA benefits for the days indicated in order to retain my trainingpay.
2 /
- Declare that the number of training days the Hines ITC printed on the form is incorrect
- enter the correct number of trainingdays on the form, and
- check the box next to the sentence that reads: I elect to waive VA benefits for the days indicated in order to retain my training pay.
3 / Check the box next to the sentence that reads: I received no military pay and allowances during the fiscal year(s)indicated on the front of this form.
4 / Check the box next to the sentence that reads: I elect to waive military pay and allowances for the days indicated in order to retain my VA compensation or pension.
f. Use of VA Form 21-8951-2
/ VA typically learns a Veteran has received drill paythrough the data match described in M21-1, Part III, Subpart v, 4.C.1.c. However, a Veteran may, on his/her own initiative, notify VA of his/her receipt (or anticipated receipt) of drill pay,and whether he/she chooses to waive VA benefits or drill pay,by completing and submitting VA Form 21-8951-2, Notice of Waiver of VA Compensation or Pension to Receive Military Pay and Allowances.Note: VA Form 21-8951-2 is essentially a blank version of the Hines ITC-generated VA Form 21-8951.
Important: Although VA does not require a Veteran’s unit commander to sign VA Form 21-8951 unless the Veteran asserts the actual number of training days is less than the number the Hines ITC printed on the form, VA always requiresa Veteran’s unit commander to signVA Form 21-8951-2.
2. Determining the Number of Days of VA Benefits a Veteran Must Waive
Introduction
/ This topic contains information on determining the number of days of VA benefits a Veteran must waive in order to receive drill pay, including- number of days reservists and members of the National Guard commonly receive drill pay
- how reserve and National Guard units calculate the number of days of drill pay a Veteran receives
- travel time during drills/training
- example of how to determine the number of days of VA benefits a Veteran must waive, and
- Veterans who receive pay for activeduty training only.
Change Date
/ March 25, 2013a. Number of Days Reservists and Members of the National Guard Commonly Receive Drill Pay
/ During a single fiscal year, reservists and members of the National Guard commonly receive drill pay for a total of 63 days, which consists of- 48 armory drills or training sessions, and
- 15 days of active duty training.
- excused absences from drills, or
- the performance of additional drills for various assignments, such as
planning meetings
conferences, or
preparation for inspections.
b. How Reserve and National Guard Units Calculate the Number of Days of Drill Paya Veteran Receives
/ The table below shows- the two types of training Veterans in the Reserve or National Guard attend, and
- how reserve and National Guard units calculate the number of days of drill pay to which a Veteran is entitled for each type of training.
Type of Training / Method of Calculation
armory drill and training sessions / Veterans receive one day ofdrill pay for each four-hour drill/training sessionthey attend. Units may hold one or two of these sessions per day over a weekend or during a weekday.
Example: During one “drill weekend,” a Veteran may receive four days of drill pay for attending twodrill/trainingsessions each day.
Notes:
- Units report the number of days for which a Veteran received drill pay, not the number of calendar days he/she attended drills/training.
- Request clarification from the Veteran’s unit if questions arise as to how it calculated the number of days of drill pay the Veteran received.
active duty training / Veterans receive one day of drill pay for each day of the annual, two-week, active duty training or “summer camp” they attend.
Important: Do not confuse this period with drill weekends.
c. Travel Time During Drills/Training
/ Include any authorized travel time for which a Veteran received drill pay when computing the number of days of VA benefits he/she must waive.d. Example: Determining the Number of Days of VA Benefits a Veteran Must Waive
/ Scenario: SergeantCummins, a reservist, is currently receiving VA compensation for diabetes. Hisreserve unit certifieshewas present for- 25days of armory drills/training,with two drill/training sessions each day, and
- 15 days of active duty training.
- 50 days of armory drills/training, and
- 15 days of active duty training.
e. Veterans Who Receive Pay for Active Duty Training Only
/ Occasionally, a Veteran may- attend armory drill/training in a no-pay status, and
- receive pay only for the annual, active duty training he/she attends.
3. Processing VA Form 21-8951 and Handling a Veteran’s Failure to Return the Form
Introduction
/ This topic contains instructions for processing VA Form 21-8951 and handling a Veteran’s failure to return the form, including- initial review of VA Form 21-8951
- processing VA Form 21-8951
- actions to take when a Veteran chooses to waive military pay, and
- actions to take when a Veteran fails toreturn VA Form 21-8951.
Change Date
/ April 20, 2015a. Initial Review of VA Form 21-8951
/ Before processing VA Form 21-8951, review the form to make sure it is complete and bears the appropriate signatures:- The Veteran must always sign VA Form 21-8951.
- The Veteran’s unit commander must sign VA Form 21-8951 only if the Veteran reports fewer training days than the Hines ITC printed on the form.
b. Processing VA Form 21-8951
/ Follow the steps in the table below upon receipt of a VA Form 21-8951 that is complete and signed in accordance with M21-1, Part III, Subpart v, 4.C.3.a.If the Veteran … / Then …
takes the action(s) described under Option 1 or 2 in M21-1, Part III, Subpart v, 4.C.1.e, and there is no reason to question the validity of the information the Veteran provided on the form / follow the instructions in M21-1, Part III, Subpart v, 4.C.4 for withholding the Veteran’s benefits for the number of training days either the Hines ITC or the Veteran entered on the form.
checks the box on VA Form 21-8951 that reads I elect to waive military pay and allowances for the days indicated in order to retain myVA compensation or pension / follow the instructions in M21-1, Part III, Subpart v, 4.C.3.c.
checks the box on VA Form 21-8951 that reads I received no military pay and allowances during the fiscal year(s) indicated on the front of this form / review the evidence of record to determine whether the Veteran was a reservist or member of the National Guard during the fiscal year in question.
- If there is reason to question the validity of the Veteran’s assertion, initiate development, to include requesting a field examination, if necessary and appropriate.
- If the evidence of record confirms the Veteran was not a reservist or member of the National Guard,
delete the diary the Hines ITC established in Stage 3 of the process described in M21-1, Part III, Subpart v, 4.C.1.c.
Important: Follow the instructions in M21-1, Part III, Subpart v, 4.C.6.i if
- VA Form 21-8951 shows training in excess of 179 days, or
- the evidence of record suggests the Veteran served on active duty during the fiscal year the VA Form 21-8951 covers.
Reference: For information about deleting diaries through
- Share, see the Share User's Guide
- VETSNET Awards, see the VETSNET Awards Handbook, or
- the Veterans Benefits Management System (VBMS), see the VBMS-Awards User Guide.
c. Actions to Take When A Veteran Chooses to Waive Military Pay
/ Follow the instructions in the table below if a Veteran checks the box on VA Form 21-8951 that reads I elect to waive military pay and allowances for the days indicated in order to retain my VA compensation or pension.Step / Action
1 / Clear an end product (EP) 290.
2 / Delete the diary the Hines ITC established in Stage 3 of the process described in M21-1, Part III, Subpart v, 4.C.1.c.
3 / Prepare an encrypted e-mail addressed to Compensation Service’s Procedures Staff (VAVBAWAS/CO/212A).
- In the subject line of the e-mail, type VA Form 21-8951-Waiver of Military Pay
- In the body of the e-mail,
- Veteran’s name and file number
- date VA received theVA Form 21-8951, and
- document identification number assigned to the electronic version of VA Form 21-8951, and
Important:
- Make one attempt to contact the Veteran by telephone prior to sending the e-mail to Compensation Service to ensure the Veteran understands
the likelihood that he/she is waiving the greater benefit.
- If telephone contact is made with the Veteran, document the conversation on VA Form 21-0820, Report of General Information.
- If, during the telephone call, the Veteran reaffirms his/her choice to waive military pay, note this fact in the e-mail to Compensation Service.
- If the attempt to contact the Veteran by telephone is unsuccessful, document the action as a note in
the Veterans Benefits Management System (VBMS).
4 / Save a copy of the e-mail as a portable document file (PDF).
Reference: For more information aboutsaving e-mails in the PDF format, see M21-1, Part III, Subpart i, Chapter 6.
5 / Follow the instructions in the VBMS User Guide for uploading the PDF into the Veteran’s eFolder.
d. Actions to Take When A Veteran Fails to Return VA Form 21-8951
/ If the actions described in M21-1, Part III, Subpart v, 4.C.3.b or M21-1, Part III, Subpart v, 4.C.4.iare not taken within 60 days of the date the Hines ITC mailsVA Form 21-8951to the Veteran for completion,- a work item is automatically created under EP 820 to alert the ROJ that the diary established in Stage 3 of the process described in M21-1, Part III, Subpart v, 4.C.1.c expired, and
- the Hines ITC e-mails a copy of VA Form 21-8951 to Compensation Service.
Step / Actions
1 / Open the Veteran’s eFolder and locate a copy of the VA Form 21-8951 that he/she failed to return.
2 / Does the file number and/or SSN printed on VA Form 21-8951belong to the Veteran whose name, address, and contact information are also printed on the form?
- If yes, proceed to Step 3.
- If no,
update the corporate record with the correct SSN, if necessary, and
proceed to Step 3.
3 / Did the Hines ITC send theVA Form 21-8951 to a Veteranwho, according to the evidence of record,did not receive drill pay during the fiscal year(s) in question?
- If yes,
proceed no further.
- If no, proceed to Step 4.
4 / Clear an EP 290and the pending EP 820.
5 / Establish EP 600.
6 /
- Follow the instructions in M21-1, Part I, 2.B for sending notice of proposed adverse action to the Veteran.
- Enclose a copy of VA Form 21-8951 with the notice.
- In the notice, inform the Veteran VA will withhold benefits for the same number of training days printed on the VA Form 21-8951 unless the Veteran submits evidence within 60 days showing why VA should not take the proposed action.
7 / Did the Veteran respond within 65 days?
- If yes, follow the instructions in M21-1, Part III, Subpart v, 4.C.3.b.
- If no,
adjust the Veteran’s award accordingly, by following the procedures in M21-1, Part III, Subpart v, 4.C.4.
Reference: For more information about 800-series EPs and their corresponding work items, see the VETSNET 800 Series Work Items Desk Reference.
4. Creating a Withholding to Offset a Veteran’s Receipt of Drill Pay
Introduction